Daily Forex Chart Art – April 1, 2014

EUR/USD: 4-hour

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

It looks like the stars are lining up for a bearish euro position! After breaking below a short-term rising trend line recently, EUR/USD has made a quick pullback then formed what appears to be a complex head and shoulders pattern. It may look a little sketchy at first but you can see that price has already broken down the formation’s neckline. Note that the pattern is roughly 250 pips in height, which suggests that the resulting selloff might be of the same size.

USD/CHF: 4-hour

USD/CHF 4-hour Forex Chart

USD/CHF 4-hour Forex Chart

Here’s another potential trend reversal on USD/CHF’s 4-hour time frame. The pair has also drawn a complex inverse head and shoulders pattern, indicating a possible uptrend. Right now though, price is still stalling around the diagonal neckline while stochastic is edging towards the oversold region. An upside break could lead to a 150-pip rally, which is approximately the same size as the chart pattern.

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

If you prefer looking at trends, then you definitely gotta check this one out! USD/JPY is forming a rising channel on its 4-hour chart. It looks ready to test the channel resistance right around the 103.50 minor psychological level while stochastic is indicating overbought conditions. A selloff could last until the mid-channel area of interest near 102.50 or until the bottom of the channel around 101.75. Make sure you wait for confirmation before hopping in!

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.

  • Chuks

    Aren’t you scared of that strong bounce off 50% retrace of recent rally in EURUSD? Yes a real war is going on around current level. The winner will draw plenty of blood from the loser. I will close my bullish bias once a Day close is made below 1.37. Otherwise, I still the pair still has some gas

    • Big Pippin

      Looks like 1.3700 is holding so far! How do you think it’ll fare this week?

      • Chuks

        Meanwhile eurgbp is still working its bottom out and I am confident of a big push in days to come. A think a bottom has been set on that pair and until a Day close is achieved below 0.8250, I am biased bullish on that pair too

  • jobee

    Always been wistful to see how do you see the daily chart EUR/AUD

    • Big Pippin

      So far it looks like more consolidation could take place! This might depend on the market catalysts lined up for this week though… What do you think of EUR/USD’s daily chart for now?

      • Chuks

        At the moment, GBPUSD has a clearer handle for bulls. I think the stage is set for that pair to hit 1.7050